FY 2009-10 TRANSPORTATION BUDGET S.B. 254 (CR-1): CONFERENCE REPORT


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Amount Over/(Under) GF/GP Target: $ 0
FY 2008-09 Year-to-Date Gross Appropriation $4,500,050,100
Changes from FY 2008-09 Year-to-Date:
  Items Included by the Senate and House
1. Debt Service. The Governor, Senate, and House increased funding for debt service payments. 59,633,700
2. Federal Aid Road Construction. The Governor, Senate, and House decreased expenditures for Federal aid road construction to reflect anticipated revenue. (247,024,400)
3. State Restricted Revenue. The Governor, Senate, and House decreased expenditures for road and bridge programs to align them with anticipated revenue: State Trunkline Roads - $63,431,000; County Road Commissions - $29,164,700; Cities and Villages - $16,260,700; and Local Bridge Program - $1,431,800. (110,288,200)
4. Capital Outlay. The Governor, Senate, and House reduced expenditures for the Airport Safety and Protection Plan and Buildings and Facilities to reflect anticipated revenue. (50,910,000)
5. Comprehensive Transportation Fund (CTF) Adjustments. The Governor, Senate, and House decreased expenditures from the CTF to align them with anticipated revenue. (9,871,800)
6. Transportation Economic Development Fund. The Senate and House transferred funding from Category A - Targeted Industries to the General Fund. (12,000,000)
7. Safe Routes to Schools. The Governor, Senate, and House increased Federal expenditures. 2,500,000
8. Intelligent Transportation Systems (ITS). The Governor, Senate, and House increased funding for increased costs and expansion of the Grand Region Ctr to 24-hour operations. 695,100
9. Other Revenue-based Adjustments. The Governor, Senate, and House adjusted expenditures from various funds to reflect anticipated revenue. 3,624,500
10. Economic Adjustments. Standard economic increases were added, none of which were funded through the General Fund. 6,872,000
11. Other Adjustments. The Governor, Senate, and House recommended other adjustments including: Microsoft upgrade - $509,300; Michigan Business One-Stop Portal - $97,300; DIT economics increases - $222,900; DIT admin. reduction - $12,500; reductions for allocation adjustments - $277,200; and increases for admin. adjustments - $3,000. 542,800
12. One-Time Adjustments/Other. Adjustments to account for one-time FY 2008-09 changes. (887,202,900)
Conference Agreement on Items of Difference
13. Transportation Economic Development Fund (TEDF). House required $40,000 TEDF money for forest roads to two additional truck inspection stations. Conference concurred. 40,000
14. Grant to Dept. of Environmental Quality. Conference appropriated funds in relation to the Wetlands Program. 1,087,100
Total Changes ($1,242,302,100)
  FY 2009-10 Conference Report Gross Appropriation $3,257,748,000
FY 2009-10 TRANSPORTATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2008-09 Year to Date:
  Items Included by the Senate and House
1. Legislative Reports. The Governor removed: privatization (Sec. 207); out-of-state travel (Sec. 260); activities of internal auditor (Sec. 314); use of women and minority-owned businesses (Sec. 334); travel on department-owned aircraft (Sec. 383); development of warranties (Sec. 601); mandrel testing of manufactured pipe (Sec. 602); contract incentives/disincentives (Sec. 612); rail line abandonment (Sec. 703); and CTF balance (Sec. 740). The Senate and House restored all of the language.
2. Restrictions on Departmental Operations. The Governor removed: hiring freeze (Sec. 205); report retention (Sec. 211); IT work projects (Sec. 258); disciplinary action against an employee who speaks to the Legislature (Sec. 261); continuous improvement efficiency mechanisms (Sec. 264); rest area maintenance signs (Sec. 319); contractor payment (Sec. 353); local Federal aid project review (Sec. 357); electronic employee newsletters (Sec. 374); prohibited use of State aircraft (Sec. 383); use of traffic congestion as project criteria (Sec. 603); dead animal removal (Sec. 610); contract incentives/disincentives (Sec. 612); Mackinac Bridge Authority mission (Sec. 654); using data from other states if MI data not available (Sec. 659); rail infrastructure loan program (Sec. 705); essential bus route corridors (Sec. 709); bus acquisition capital grants (Sec. 721); match funds for job access reverse commute grants (Sec. 722); and high quality public transit (Sec. 734). Senate and House restored all except Sec. 705.
3. Appropriation Earmarks. The Governor removed earmarks: $500,000 - "Give 'em a Brake" campaign (Sec. 324); and $32,000 - Safe Routes to School - Eaton Rapids (Sec. 655). The Senate and House restored the language.
4. Specified Projects. The Governor removed language regarding specific projects: criteria for stations on Ann Arbor/Detroit rail line (Sec. 397); interchange at M-48/I-75 in Chippewa County (Sec. 615); I-75 service drive in Hazel Park (Sec. 617); upgrade of M-49 (Sec. 656); and interchange at I-196/Phoenix Road in South Haven (Sec. 658). The Senate and House restored all except Secs. 397 and 617.
5. Permits. Governor/Senate/House revised, directing fees to "an appropriate fund" rather than the STF (Sec. 301).
6. Street Railway Appropriation. 2008 PA 487 directs the Governor to include an appropriation to a nonprofit street railway in the annual budget recommendation. For FY 2009-10, the appropriation is $0. (Sec. 398)
7. Capital Outlay Allocations. The Governor, Senate, and House added language requiring statutory allocation of lump-sum appropriations and specifying that lump-sums are available for no more than three fiscal years. (Sec. 904)
Conference Agreement on Items of Difference
8. Reports. Conference updated, retained and eliminated various reports from the House and Senate, including reports on: funds received by local units within legislative districts (Sec. 303), FTE levels (Sec. 358), Treasury cost allocations (Sec. 306), deferred 2003 projects (Sec. 376), funding formula distributions (Sec. 394), improvements on railroad infrastructure (Sec. 741), and airport improvement projects (Sec. 902).
9. Complete Streets. House required "complete street" policies. Conference provided intent language encouraging the development of model "complete street" policies and assistance to local units. (Sec. 399)
10. Mobility Managers. Conference adopted Senate language to encourage local transit agencies to utilize mobility managers to address community needs. (Sec. 744)
11. Detroit River International Crossing. Governor did not include. Conference prohibited binding the State to construction and limited expenditures to $2,500,000. Required a traffic study and a proposal for the project by May 1, 2010. Intent language indicated legislative adoption or rejection of proposal by June 1, 2010. (Sec. 384)
12. Expenditure Web Site. Conference adopted House language requiring detailed expenditure information to be posted on a public Internet site. (Sec. 266)
13. Recycled Materials/Alternate Energy. Conference encouraged developing standards for and examining the use of alternative road surface materials, including recycled materials (Sec. 660); and to examine purchasing hybrid-electric vehicles. (Sec. 743)
14. Subsidy Limit. Senate limited to $3.7 million, House and Governor omitted. Conference eliminated the limit on certain route-specific railroad routes (Sec. 711). Subsidies still limited by the general appropriation.

Date Completed: 9-30-09 Fiscal Analyst: David Zin Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hitrn_cr.doc